1 of 6 

Attachment, ADC 443 

ATTACHMENT TO ADC 443 

Intra-DLA Revisions to Procedures and to 527R Receipt and 947I Inventory Adjustment for the 

Downgrade for Scrap Process for use by DLA Disposition Services under Reutilization Business 

Integration (RBI) (Supply) 

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

 a. Technical POC: DLA Logistics Information Service Agency-LMT, J6B.

 b. Functional POC: DLA Logistics Information Service Agency-LAR, J6B. 

2. FUNCTIONAL AREA:

 a. Primary/Secondary Functional Area: Primary: Supply/Inventory Management 

 b. Primary/Secondary Functional Process: Primary: Materiel Receipt/Inventory 

3. REFERENCES (PDCs are available at www.dla.mil/j-6/dlmso/eLibrary/Changes/proposed.asp): 

 a. DLA Logistics Management Standards memorandum, June 20, 2011, subject: PDC 434, 

Intra-DLA Revisions DLMS 527R Receipt and Associated Procedures for Use by DLA Disposition 

Services under Reutilization Business Integration (RBI) (Supply) 

b. DOD 4160.21-M, Defense Materiel Disposition Manual, available at 

www.dtic.mil/whs/directives/corres/pdf/416021m.pdf

c. DLA Logistics Management Standards memorandum, November 07, 2011, subject: ADC 

447, Intra-DLA Revisions to the DLMS Supplement 832N, Catalog Data Support and Associated 

Procedures under Reutilization Business Integration (RBI) (Supply) 

 

d. DLA Logistics Management Standards memorandum, September 01, 2011, subject: ADC 

413, Intra-DLA Revisions to Procedures and DLMS 846A Asset Reclassification Transaction to 

Add Disposition Services Container ID Number Change Functionality for use by DLA Disposition 

Services Under Reutilization Business Integration (RBI) (Supply)

e. DOD 4160.28-M: 

1) Volume 1, Defense Demilitarization: Program Administration, available at 

www.dtic.mil/whs/directives/corres/pdf/416028m_vol1.pdf

2) Volume 2 -Defense Demilitarization: Demilitarization Coding, available at 

www.dtic.mil/whs/directives/corres/pdf/416028m_vol2.pdf

3) Volume 3 - Defense Demilitarization: Procedural Guidance, available at 

www.dtic.mil/whs/directives/corres/pdf/416028m_vol3.pdf

f. DODI 2030.08, Implementation of Trade Security Controls (TSC) for Transfers of DOD 

U.S. Munitions List (USML) and Commerce Control List (CCL) Personal Property to Parties Outside DOD Control, available at www.dtic.mil/whs/directives/corres/pdf/203008p.pdf
2 of 6 

Attachment, ADC 443 

NOTE: Significant changes from the PDC are highlighted in yellow throughout this ADC 

4. BACKGROUND: The DLA Disposition Services (formerly Defense Reutilization and Marketing 

Service (DRMS)) is a worldwide presence within the Department of Defense, with disposal 

specialists in 14 foreign countries, two U.S territories, and 39 states. DLA Disposition Services’ 

mission is the execution of disposition solutions for excess military property. The RBI project will 

replace the DRMS Automated Information System (DAISY) by integrating DLA Disposition 

Services business processes within the DLA enterprise suite of applications, including the 

Distribution Standard System (DSS) and the Enterprise Business system (EBS). 

PDC 434 (reference 3a) addressed materiel receipt procedures for DLA Disposition Services Field 

Offices. When the Services no longer need an item, they will turn it into a DLA Disposition 

Services Field Office. The customer assigns a Defense Turn In Document (DTID) number to each 

turn in. On the turn-in document, the Services will provide the National Stock Number (NSN) 

when available, or a Service local stock number (LSN) and as much descriptive data as possible. If 

an NSN is not assigned to the item at the time of turn-in, then the DLA Disposition Services Field 

Office assigns a Disposition Services LSN to the item. Receipts will only be processed in EBS for 

Disposition Services if the materiel has an NSN, or one of the pre-defined Disposition Services 

LSNs. The master LSN list for DLA Disposition Services will be maintained in EBS. When an 

LSN (scrap or usable) is updated in EBS, EBS sends an 832N Catalog Data Support transaction to 

DSS to update its LSN table1. 

When the DLA Disposition Services Field Office receives an item, the receiver will perform a 

visual inspection of each turn-in item to verify whether the item is usable in its current state or 

needs to be downgraded to scrap. In addition to this, each receiver will perform initial research via 

Federal Logistics Information System (FLIS) (for items that are submitted by NSN) to verify that 

the data submitted is accurate FLIS data. If required, the receiver will make updates to any data 

discrepancies. The receiver will submit the required data to EBS via an intra-DLA DSS-EBS 

interface to obtain the appropriate disposition category for the item. EBS will send back the 

appropriate disposition category to the receiver within DSS. Once EBS recommends a disposition 

category, DSS completes the receipt process with a 527R Receipt transaction 

a. Intent of the transaction: These transactions support the downgrade of materiel to scrap 

by DLA Disposition Services as authorized under DOD authority in DOD 4160.21-M (reference 

3b): 

1) DOD 4160.21-M, Chapter 3, Paragraph B. “TURN-IN TO THE DRMO” [now referred 

to as a DLA Disposition Services Field Office] Subparagraph 4. “Accountability of property which is 

not disposed of through RTD may not be returned to the generating activity, except as specified in 

Chapter 4, Property Requiring Special Processing. HP shall be processed as HW disposal service contracts. Other property shall be downgraded to scrap, processed for Abandonment/Destruction, or disposed by a DLA Disposition Services service contract.” 

2) DOD 4160.21-M, Chapter 3, Paragraph F. “ACCOUNTING FOR PROPERTY AT 

THE DRMO” Subparagraph 3.b. “Personal property, which, in the opinion of DRMO, has no 

commercial value other than for basic materiel content, may be downgraded to scrap after the End 

of Screening Date (ESD) and or completion of any required DEMIL.” 

 

1

 Refer to ADC 447 (reference 3c) for information on use of 832N transaction with DLA Disposition Services. 
3 of 6 

Attachment, ADC 443 

STAFFING NOTE: Throughout this change, DLA Disposition Services ICP uses EBS; 

DLA Disposition Services Field Offices use DSS. 

b. Scenario for which the transaction is used. The two scenarios are as follows: 

1) Downgraded Items at Time of Turn-in (at Time of Receipt): During the receiving process, if the DLA Disposition Services receiver determines the item is not usable and should 

be downgraded to scrap upon receipt, the receiver will assign a Disposition Services Scrap LSN to 

replace the existing NSN or LSN found on the original DTID generated by the customer. Then the 

DLA Disposition Services Field Office, during the pre-receipt process (detailed in Reference 3a.), 

initiates in DSS a “Request for Disposition” from EBS. EBS then assigns the “Disposition Category” and returns the “Disposition Category” response to DSS. When the “Disposition Category” is 

assigned for the Scrap item, the receiver submits the receipt for the scrap item to EBS using the 

527R Receipt transaction with a Scrap LSN. In this scenario, if the entire DTID materiel is being 

downgraded to scrap at receipt, then the original DTID number will remain. The original NSN or 

LSN will be referenced in the 527R for audit purposes to link the original NSN or LSN to the newly 

assigned Scrap LSN. If there is a duplicate DTID, a unique control number (UCN) will be generated for the downgrade to scrap. If only part of the DTID will be downgraded to scrap then a UCN 

will be generated. STAFFING NOTE: The 527R Receipt transaction for materiel downgraded to 

scrap at time of receipt will not reflect the new 527R 2/LIN01/010 code W (Receipt as a result of 

DLA Disposition Services process, authorized by DOD 4160.21-M, to downgrade materiel to scrap 

subsequent to the initial receipt of materiel). The 527R for materiel downgraded to scrap at time of 

receipt will reflect the appropriate 2/LIN01/010 code to identify the source of the materiel for that 

receipt (e.g., LIN01 code ‘I’ = “Return to inventory from own Service/Agency users”; LIN01 Code 

‘J’ = “Return to inventory from other DOD activity users”, etc. LIN01 codes ‘I’ and ‘J’ represent 

MILSTRAP DI Codes D6A and D6B functionality respectively). In addition, there is no 947I Inventory Adjustment Decrease (Downgrade to Scrap) associated with materialmateriel downgraded 

at time of receipt. 

2) Downgraded Items After Turn-in (After Receipt): At the end of the 42-day 

screening cycle, or at any time after receipt, if EBS determines an item is not eligible for sales (i.e. 

assigns a disposal status); EBS will send an 846C Disposition Status Update transaction to DSS 

with the DTID flagged as DS-Disposal. When DSS receives the “DS” recommendation from EBS, 

the DSS Ultimate Disposal process determines the final disposition of the property according to 

pre-defined business rules. If the decision is “downgrade to scrap”, DSS sends EBS a DLMS 947I 

Inventory Adjustment (with Quantity or Status Adjustment Reason Code “BS-Downgrade (DI 

Code D9_ (loss) functionality)). Within DSS, a new receipt is created for the scrap using the 527R 

Receipt with 2/LIN01/010 code ‘W’ (W-Receipt as a result of DLA Disposition Services process 

to downgrade to scrap subsequent to the initial receipt of materiel.); the standardized DLA 

Disposition Services Scrap LSN will be assigned in compliance with the scrap classification 

listing. In addition, a Unique Control Number (UCN) is assigned and associated to the original 

DTID; this is necessary because a receipt submitted to EBS under the original DTID would appear 

as a duplicate entry and could not be processed. This UCN now becomes the controlling document 

number (it functions as if it were the original DTID). The new Scrap receipt will still contain the 

original DTID as a secondary reference number, and original materiel identification (NSN or LSN) 

as a reference materiel number. If the item is part of a container when this happens, DSS will also 
4 of 6 

Attachment, ADC 443 

send an 846A, Asset Reclassification transaction, which will remove the item from a container.2

The UCN and the original DTID will both be annotated in the transaction. 

5. PROPOSED CHANGE:

a. Requested change in detail: Revise DLMS 527R Receipt and 947I Inventory Adjustment 

(Loss) transactions to clearly identify those transactions associated with the DLA Disposition Services 

downgrade of materiel to scrap subsequent to the initial receipt of the materiel from the customer. 

b. Procedures. This change updates the DLMS 527R Receipt and 947I Inventory Adjustment 

transactions and procedures used by the DLA Disposition Services. 

1) Revise DLMS 527R Receipt and 947I Inventory Adjustment transactions as shown in 

Enclosure 1. 

2) Revise DOD 4000.25-M, DLMS, Volume 2, Chapter 16 as shown in Enclosure 2. 

c. Alternative: STAFFING NOTE: The following alternative to use of a Receipt transaction 

when DLA Disposition Services downgrades materiel to scrap after the initial receipt, was 

proposed by the DOD MILSTRAP Administrator but was not acceptable to RBI for reason stated. 

Accordingly it is provided for information/visibility only and it does not require comment. The 

DOD MILSTRAP Administrator had proposed that a 947I Dual Inventory Adjustment transaction be 

used when DLA Disposition Services downgrades materiel to scrap at some point subsequent to the 

initial receipt, to provide a clean audit trail for the ‘downgrade to scrap’ process. The suggested Dual 

Inventory Adjustment (Downgrade to Scrap), would have addressed materiel being both downgraded to 

scrap, and reidentified from an NSN/LSN to a Scrap LSN. The dual adjustment would have reflected 

both the loss to the original NSN/LSN, and a gain to the new Scrap LSN. 

Reason this approach was not acceptable to RBI: RBI stated that they require a 527R Receipt for the 

materiel downgraded to scrap after the initial receipt due to a system constraint surrounding EBS 

controlled property logic and financial accounting. For this same reason DLA stated that an Inventory 

Adjustment (Reidentification) (947I for MILSTRAP D8J/D9J functionality) did not meet the EBS 

requirement to process a 527R receipt when materiel is downgraded to scrap. 

6. REASON FOR CHANGE: As a result of RBI, DLA Disposition Services Field Offices will use 

DSS and DLA Disposition Services ICP will use EBS to manage inventory and property issues. The 

DLA Disposition Services Field Office will process receipts and send the 527R Receipt transaction 

to the DLA Disposition Services ICP. The Receipt will include information required to properly 

receipt materiel, complete all validations required, post the inventory, and then complete post-receipt 

activities such as writing the record to the reimbursement table or disposing of the asset. These 

changes to the receipt and inventory adjustment transactions and procedures will ensure the same or 

better functionality exist after the implementation of RBI as before. 

7. ADVANTAGES AND DISADVANTAGES:

a. Advantages. DLA Disposition Services (using EBS and DSS), will be able to comply with 

DLMS standards for the RBI process. 

b. Disadvantages: None identified. 

 

2

 Refer to ADC 413 (reference 3d) for the DLA Disposition Services container ID number change process using the 

DLMS 846A transaction. 
5 of 6 

Attachment, ADC 443 

8. DEFENSE AUTOMATIC ADDRESSING SYSTEM (DAAS) MAPPING: Update DAAS 

maps to allow new data to pass any applicable edits. 

9. NOTE ANY REGULATIONS OR GUIDANCE: As a minimum, requires update to DOD 

4000.25-M, DLMS, Volume 2 procedures, as well as the appropriate publication for DLA Disposition 

Services. 

10. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: January 17, 2012 

11. IMPACT: 

a. PUBLICATIONS:

1) Requires update to DLMS 527R Receipt transaction 

2) Requires updates to DLMS 947I Inventory Adjustment transaction 

3) Requires update to DOD 4000.25-M, DLMS, Volume 2, chapter 16 to add procedures 

for the Disposition Services Downgrade to Scrap processing under RBI, as shown in Enclosure 2. 

b. AUTOMATED INFORMATION SYSTEMS (AIS): 

1) DLA: Impacts DAAS, EBS, and DSS. 

2) Service AIS: DLA advises that there will be no impact to Services systems as a result 

of this change. 

 c. New DLMS data: Reference Materiel Number. DLA Disposition Services uses the Reference Materiel Number to identify when materiel turned into a DLA Disposition Services Field Office 

was determined to be scrap at initial receipt and/or downgraded after receipt, and a Disposition Services 

scrap LSN was cited as the primary materiel identification. The NSN or Service LSN that the generator 

identified when materiel was turned in will be populated as the Reference Materiel Number.

12. PDC 462 COMMENTS AND DISPOSITION: 

Organization PDC 462 Comment Disposition 

Army Concurs as written. Noted. 

Navy Concurs as written and submits no additional changes or 

amendments. 

Noted. 

Air Force Concurs without comment. Noted. 

Marine Corps Concurs as written. Noted. 

USTRANSCOM Approves Noted. 

DLA DLA concurs with comments (comments from DLA J33): 

1. Recommend referencing the Defense DEMIL Manual 

(DOD 4160.28-M) and Trade Security Control (DODI 

2030.08) available as follows: 

DOD 4160.28-M 

a. Volume 1 - 

www.dtic.mil/whs/directives/corres/pdf/416028m_vol1.pdf

 b. Volume 2 - 

www.dtic.mil/whs/directives/corres/pdf/416028m_vol2.pdf

 c. Volume 3 - 

www.dtic.mil/whs/directives/corres/pdf/416028m_vol3.pdf

DODI 2030.08 - 

www.dtic.mil/whs/directives/corres/pdf/203008p.pdf

References added as requested. 
6 of 6 

Attachment, ADC 443 

Organization PDC 462 Comment Disposition 

DLA 

continued

2. PDC 462, Page 1 of 5, 4., second paragraph: 

Should "If an NSN is not available, then the DLA 

Disposition Services Field Office assigns an LSN for 

the receipt, "instead read " If an NSN or LSN is not 

available,"? Otherwise, it sounds like there would be 

two LSNs assigned, one by the original Service, and 

another one by Disposition Services. Wouldn't we 

just use the LSN and description provided by the Service (if it exists)? 

RBI response: The only valid materiels 

that will be allowed to be processed on 

a receipt sent to EBS will be a NSN or a 

Disposition Services LSN. All other 

Services based LSNs will have to be 

replaced with a Disposition Services 

LSN in order to be successfully 

processed in EBS. In the case where an 

item is turned in with a Services LSN, 

the receiver will find the corresponding 

Disposition Services LSN put that on 

the receipt and store the Services LSN 

in a reference field on the receipt submitted to EBS. We cannot process services LSNs since we do not have 

records created in EBS for them. 

Paragraph updated in ADC for clarification. 

3. PDC 462, Page 2 of 5, second paragraph: Recommend instructions, paragraph, or a reference be included for actions the receiver or system would take if 

items do not match the data found on the DTID 

RBI Response: Updated the paragraph 

to make it clearer (change is in highlighted bold italics): 

“When the DLA Disposition Services 

Field Office receives an item, the 

receiver will perform a visual inspection 

of each turn in item to verify that the 

item is usable in its current state or 

does it need to be downgraded to scrap. 

In addition to this, each receiver will 

perform initial research via FLIS (for 

items that are submitted as NSNs) to 

verify that the data submitted is 

accurate FLIS data. If required the 

receiver will make updates to any data 

discrepancies. If the item matches the 

data found on the DTID, tThe receiver 

will submit the required data to EBS via 

an intra-DLA DSS-EBS interface to 

obtain the appropriate disposition 

category for the item. EBS will send 

back the appropriate disposition 

category to the receiver within DSS. 

Once EBS recommends a disposition 

category, DSS completes the receipt 

process with a 527R Receipt 

transaction.” 

Enclosures
1 of 2 

Encl 1, ADC 443 

ENCLOSURE 1 TO ADC 443 

A. DLMS Supplement (DS) 527R Receipt Change Table. Revise DS 527R, as follows: 

# Location DS 527R Receipt 

Revision 

Reason 

1 DLMS 

Intro 

Notes

Add ADC 443 to DLMS Introductory note 5: 

- ADC 443, Intra-DLA Revisions to Procedures and to 527R 

Receipt and 947I Inventory Adjustment for the Downgrade for 

Scrap Process for use by DLA Disposition Services under 

Reutilization Business Integration (RBI) (Supply) 

Identifies changes 

included in DS.

2 2/LIN01/010 Add new code ‘W’ to the LIN01 receipt codes

22. V - Reserved for assignment by DoD. 

23. W - Receipt as a result of DLA Disposition Services 

process, authorized by DoD 4160.21-M, to downgrade materiel 

to scrap subsequent to the initial receipt of materiel. There is 

no corresponding MILSTRAP DI Code for this use. Authorized DLMS enhancement for DLA Disposition Services only. 

Refer to ADC 443. 

23. 24. X – For temporary use in intra-Army transactions to record 

Decapitalization/Capitalization of assets between funding types. Army 

authorized DLMS migration enhancement for interim use until implementation of Army Exchange Pricing (estimated to be April 2009). ‘X’ 

will be deleted from 527R at that time. This is associated with IntraArmy use of DI Code D6X when rp 73 = X. Refer to ADC 267.

24. 25. Y – CAV Detail Record. Authorized for INTERIM USE by 

Navy as a flag to identify CAV non-balance affecting ‘detail’ receipt 

transactions. The balance affecting CAV “summary” receipt transaction 

must use the appropriate standard LIN01 code. Value ‘Y’ is nonstandard 

and is authorized for intra-Navy interim use pending implementation of 

“detail” information within a standard DLMS receipt through looping 

structure. Navy will address CAV becoming compliant with DLMS standard after Navy ERP completes the Single Supply Solution Release 1.1 

implementation in 2012. LIN01 code ‘Y’ will be deleted from 527R at 

that time. Refer to ADC 342. 

22. 26. Z – For use with returns not identified by other codes. Requires 

use of 2/NTE/110 which will require manual intervention. Avoid use except under extraordinary circumstances. 

New code for receipt 

from downgrade 

supports RBI 

requirements. 

Administrative 

updates to renumber 

location of codes X, 

Y, and Z as shown 

at left, so all codes 

appear in DS in 

alphabetic sequence. 
2 of 2 

Encl 1, ADC 443 

# Location DS 527R Receipt 

Revision 

Reason 

3 2/LIN08/010 OPEN LIN08 and add new qualifier ‘FS’ and ‘SW’: 

Federal Note: Use any code 

DLMS Note: DLA Disposition Services uses the Reference Materiel 

Number when materiel turned into a DLA Disposition Services Field 

Office was determined to be scrap at initial receipt and/or downgraded 

after receipt, and a DLA Disposition Services scrap LSN was cited at 

LIN02/LIN03. The NSN or LSN that the generator identified when 

materiel was turned in will be populated as the Reference Materiel 

Number at LIN08/LIN09. Authorized DLMS enhancement for use by 

DLA Disposition Services in receipt and historical receipt transactions. 

Refer to ADC 443. 

For DLMS use only the following codes are authorized. 

FS National Stock Number 

SW Stock Number 

DLMS Note: Use to identify the local stock number (LSN).

Supports RBI. 

Reference Materiel 

Number is the cross 

reference materiel 

ID required when 

materiel is downgraded at time of 

receipt. 

(Note: LIN06/07 

was opened by PDC 

434 (which will become ADC 442.) 

STAFFING NOTE: The reference materiel number will be populated when a NSN/Disposition 

Services LSN was turned into a DLA Disposition Services Site but was determined by the receiver 

to be receipted as scrap instead. When this occurs, the scrap LSN number will be populated in the 

LIN02 materiel identification field, and the NSN/Disposition Services LSN, which the generator 

turned in, will be populated as the Reference Materiel Number. This allows for traceability of downgrades to scrap. This is an additional reference materiel if an item has been downgraded to scrap – 

this references the original materiel on the receipt. 

RBI would like to keep a separate field for a “Reference Materiel Number” from the LIN04/05 in the 

case that there is a related Service LSN for the item at LIN04/05. EBS will only store items that 

contain a valid NSN or are one of the DLA Disposition Services LSNs. 

4 2/LIN09/010 Open LIN09 Supports RBI 

B. DS 947I CHANGE TABLE. Revise DS 947I as follows (table reflects version 4030; corresponding 

changes will be made to version 4010; however NOTE that only version 4030 has IUID capability): 

# Location 

(version 

4030) 

DS 947I Inventory Adjustment 

Revision 

Reason 

1 DLMS 

Intro 

Notes

Add ADC 443 to DLMS Introductory note: 

- ADC 443, Intra-DLA Revisions to Procedures and to 527R Receipt and 947I 

Inventory Adjustment for the Downgrade for Scrap Process for use by DLA 

Disposition Services under Reutilization Business Integration (RBI) (Supply) 

Identifies changes 

included in DS.

2 2/W1901/

0200 

Add new qualifier ‘BS’ with DLMS note:

BS Downgrade 

DLMS Note: Inventory Adjustment Decrease (Downgrade to Scrap). Loss resulting from the DLA Disposition Services process, authorized by DoD 4160.21-

M, to downgrade materiel to scrap subsequent to the initial receipt of materiel. 

Single adjustment. There is no corresponding MILSTRAP DI Code for this use. 

Authorized DLMS enhancement for DLA Disposition Services only. Refer to ADC 

443.

New code for 

inventory 

adjustment 

resulting from 

downgrade to 

scrap supports 

RBI requirements. 
1 of 2 

Encl 2, ADC 443 

ENCLSOURE 2 to ADC 443 

DOD 4000.25-2-M, DLMS, Volume 2, Chapter 16 Procedures Associated with ADC 443 

DLA recommends Inclusion of the following Scrap Downgrade procedures in New Section of

Chapter 16, section C16.6. These procedures are new in their entirety and were not staffed with 

PDC 462:

C16.6.4 Scrap Downgrade 

C16.6.4.1. Downgrade to Scrap. The downgrade to scrap process is used by the DLA 

Disposition Services and their Field Offices when an item is no longer needed and the property 

has no commercial value other than for basic material content. Policy regarding downgrading 

materiel to scrap can be found in DoD 4160.21-M, Defense Material Disposition Manual. 

C16.6.4.2. Downgrade Items Upon Receipt (at Time of Turn-in): During the receiving 

process, if the DLA Disposition Services Field Office determines the item has only scrap value, the 

item may be downgraded to scrap upon receipt. The Field Office shall assign a Disposition 

Services Scrap LSN to replace the existing NSN or LSN found on the original DTID generated by 

the customer. 

 

C16.6.4.2.1. During the pre-receipt process, the Field Office shall request a 

“Disposition Category” from DLA Disposition Services (see 16.6.x.x.x DLA Disposition Category 

Assignment Procedures).* Once the Disposition Category assignment response is provided, the 

Field Office shall submit the receipt for scrap to the DLA Disposition Services, using DLMS 527R 

Receipt (Transaction Type Code D4) using a Scrap LSN. The 527R Receipt for materiel 

downgraded to scrap at time of receipt shall reflect the source of the materiel received/returned 

code, e.g., J = Return to inventory from other DoD activity users (see Chapter 13 for the MRR, 

Reason for Materiel Receipt/Return**). 

*STAFFING NOTE: This paragraph to be developed based on PDC 436 (which will become ADC 412). 

** STAFFING NOTE: The DOD MILSTRAP Administrator is updating DLMS, Volume 2, Chapter 

13 Receipt chapter to include a list of the 527R LIN01 Reasons for Materiel Receipt/ Return) 

 C16.6.4.2.2. If entire quantity on the DTID is being downgraded to scrap, 

the original DTID number shall remain and the original NSN/LSN shall be referenced in the 527R 

Receipt for audit purposes, to link to the newly assigned Scrap LSN. If the DTID is a duplicate 

number, then a Unique Control Number (UCN) shall be generated for the downgrade to scrap. 

 C16.6.4.2.3. If only part of the DTID is being downgraded to scrap, then a 

UCN shall be generated and the 527R Receipt shall contain the original DTID as a secondary 

reference number. 

 

C16.6.4.3. Downgrade Items After Turn-in (After Receipt). Any time after receipt, 

DLA Disposition Services may notify the Disposition Services Field Office via a DLMS 846C, 

Disposition Status Update Transaction (Report Type Code PC), to change the disposition status of 

the DTID to ‘DS’ (Disposal). When the Field Office receives a disposal recommendation, the 

disposition of the property at the Field Office is determined by pre-defined Ultimate Disposal 

process business rules. 
2 of 2 

Encl 2, ADC 443 

C16.6.4.3.1. If the business rule decision is to downgrade to scrap, the Field 

Office shall send a 947I, Inventory Adjustment (Transaction Type Code NU) with Quantity or 

Status Adjustment Reason Code BS – Downgrade (Loss). 

 C16.6.4.3.2. A new receipt is created for the scrap using the 527R Receipt 

with the source of materiel received/returned code W - Receipt as a result of DLA Disposition 

Services process to downgrade to scrap, subsequent to the initial receipt of materiel. A DLA 

Disposition Services scrap LSN shall be assigned in compliance with the scrap classification 

listing for use in the new 527R, Receipt. A UCN shall be assigned and associated with the original 

DTID to avoid duplication in DLA Disposition Services. This UCN shall become the controlling 

document number in the 527R. The new Receipt shall contain the original DTID as a secondary 

reference number, and shall reference the original materiel identification (NSN or LSN). 

 C16.6.4.3.3. If the materiel/DTID downgraded to scrap is part of a container, 

the Field Office shall generate an 846A, Asset Reclassification Response (Report Type Code TD), 

to delete the DTID/container association in order to maintain container synchronization and 

inventory accuracy (see C16.6.3.2., Disposition Services Container Transfer*). 

*STAFFING NOTE: This is the paragraph number was assigned in ADC 413.